Ch. 7 Reading Guide

Dues Tues. 10/20
Read. p 112-118 (really read it!)
1.  Identify the four components of GDP using the expenditures approach.  Create an example of a transaction which would be counted under each transaction.
2.  Identify examples of transactions that would be excluded from GDP.  Provide an example of each.
3.  Explain the concept of "unplanned investment" and how it relates to the calculating GDP.




Due Thursday. 10/22.
Read p. 123-127
1.  Explain the difference between real and nominal GDP (or real vs nominal anything).
2.  Complete questions 7 and 12 on p. 129.




Due Friday, 10/23.
1.  What are the4 drawbacks, shortcomings, and failures of GDP as an accurate indicator of our economy?